Orange Capital Issues Statement Regarding Pinnacle Entertainment

  Orange Capital Issues Statement Regarding Pinnacle Entertainment

Business Wire

NEW YORK -- July 24, 2014

Orange Capital, LLC (“Orange Capital” or “we”), today issued the following
statement in regards to its investment in the shares of Pinnacle
Entertainment, Inc. (“Pinnacle” or the “Company”) (NYSE:PNK):

On April 16, 2014 Orange Capital sent a letter to Mr. Anthony Sanfilippo,
Pinnacle’s CEO, outlining a compelling case for the Company to separate its
owned real estate into an independent publicly listed real estate investment
trust (“REIT” or “PropCo”) which would be distributed to shareholders via a
tax-free spin-off (“PropCo Transaction”).

Based on our analysis, we believe a PropCo Transaction could result in an
approximate 60%-90% increase in Pinnacle's current share price to $35-$42 per
share. Orange Capital’s methodology conservatively accounts for: (a)
additional capital that may be required to de-leverage the balance sheet, (b)
transaction and financing costs, and (c) incremental general & administrative

While we have been in contact with management, we are unsatisfied with the
Company’s response to date. Pinnacle’s only public comments in regards to our
proposal have been to repeat that management is always seeking ways to
“enhance shareholder value.” Given the likely significant value creation
associated with a PropCo Transaction, we believe a deliberate response is
required. Orange Capital urges Pinnacle’s board of directors to promptly
announce that the Company has:

  *Formed a special committee of independent directors (the “Special
    Committee”) to evaluate a PropCo Transaction; and
  *The Special Committee has retained financial, legal and tax advisors to
    explore a possible PropCo Transaction.

Should the Company fail to take appropriate steps towards maximizing
shareholder value, Orange Capital will explore all options available to
protect the interests of all shareholders.


Orange Capital, LLC is a New York-based investment firm. Orange Capital was
co-founded in 2005 by Daniel Lewis and Russell Hoffman. Prior to Orange
Capital, Daniel Lewis was a director with Citigroup's Global Special
Situations Group.


Media Contact
Bayfield Strategy, Inc.
Riyaz Lalani, 416-907-9365
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